Weekly Income Alert – June 5, 2026

Welcome, everyone, to Weekly Income Alert. Can you guess where I am? I see people here from everywhere.

I see, RD Options in South Dakota, Larry Laws in Maui, B Bond Steel in Pittsburgh. But can you guys guess where I am? I’ll give you a give you a minute. Somebody said Costa Rica.

It’s a very good guess, given my fondness for Costa Rica. People saying Vancouver, Florida.

I’ll give you one more second to see if anybody can get it. Up. E, Einsor got it right. Portugal.

Very good. I am in Lagos, Portugal. I’m here with Real Estate Trends Alert. They’re gonna be showing me around the Algarve.

They have a project coming up, sometime soon. I’m not sure exactly when. Haven’t gotten the deal briefing yet. Haven’t met up with them yet.

We just got here yesterday.

But I figured I’d show you the incredible view that we have. That’s the ocean right behind us. You’ll probably see you can see, I think, a crane in the background. There’s a ton of construction going on here.

So, you’ll you might see this the crane swing into view. We’ll we’ll see. But I I did wanna show you the, the beautiful view, here in Portugal. It’s it’s pretty incredible.

And it’s, it’s kinda late afternoon for me here, but I know you guys are just getting started. So let’s, let’s talk about what’s happening in the markets. You know, it was a decent week, but, this morning, we’re seeing, the Russell down. Technology’s getting smashed.

The socks is down almost six percent. That’s a big move. But, you know, that being said, let’s let’s take today out of the picture.

There’s really not too much to be worried about right now in the markets other than the markets are certainly frothy. I I think you’d have to be blind not to think that they’re frothy. They’re just kinda revving up in anticipation of the SpaceX IPO. And look, eventually, this is going to end. Eventually, there’ll be a rest or a correction or a bear market. But for right now, there’s not that much out there that has me particularly worried.

And that could change on on a dime, as you know. But as of this moment, there’s not a ton. You know, one of the things I’ve been talking about for a while was I was really concerned about breadth because as the markets were going higher, breadth was fairly weak. We were seeing more new lows than new highs.

We were seeing more stocks that were down rather than up even though the indexes were making new highs. That has changed pretty dramatically in the last two weeks. We’re seeing more new highs than new lows. We’re seeing a lot more stocks up than down.

So that’s a really, really positive sign. So as of this moment, I don’t see too much to worry about other than, like I said, things are frothy. But, you know, bull markets can can run farther than you expect and frothy markets can certainly keep going much further than you expect. So until we see some signs that there’s something to be worried about, I’m trying not to be worried about it.

So that’s all really, really good stuff.

And as a result, our positions are great. Today’s, position will expire worthless, which is what we want. If you’re new, we sell the option spread for a credit, and we want it to expire worthless. Going to zero is the best thing that happens to us in this world, in the put spread world, the credit spread world. So, yeah, the we have the twenty seven ten, two thousand seven hundred put spread right now with the Russell at twenty eight eighty. We would need something really devastating to happen today for today’s expiration to not work out.

For next week, we’ve got the twenty seven eighty, twenty seven seventy puts, so we’re still a hundred points away. And then the June eighteenth spread, a little bit closer, especially with today’s down movement. We’re at twenty eight thirty, twenty eight twenty. I’ll let you know if we need to make any changes, if the market continues to sell off, but we still have two weeks to go.

And, for those of you who’ve been with me for a while, you know that I don’t worry about things when they’re two weeks to go. When as we get a little bit closer, if it’s the end of next week or end of next week or the beginning of the following week, if we’re a little bit closer to our strike prices, then, you know, we may make some moves. But right now, we’re not gonna worry about that. And just because we’re having one bad day after, you know, really, really strong few weeks, I don’t think it’s anything to be too worried about yet.

So like I said, we’re not gonna worry about things until they give us a reason to worry. So really, really good stuff. Positions in the the positions are in a great place, and today’s position will expire worthless. So good, good stuff.

So let me just take a quick look where the market is because it has come in a little bit since I did my calculations before. I think I might have to change what I originally thought.

Yeah. Okay. So, let me share my screen as usual.

And, it takes me a little bit clunkier because usually I have a couple of computers, a couple of screens, and right now, I just have my one laptop. So here we go.

Alright. So you can see that.

And let me just double check, make sure you guys can see that.

Some people saying pullback, timing is great for us. And, you know, it is I I really don’t mind when we have a little bit of a sell off on Fridays because, if if that makes the VIX go up, as long as it’s not getting close to our strikes. But, you know, a day like today, the VIX is up, that’s gonna give us a little bit more juice for our options. So that’s that’s positive. You know, as long as as long as it’s not putting our positions in jeopardy, I’m good with that. So I agree. So, we trade the Russell as you very well know.

And we our strategy is the vertical put.

So we are going to trade the oh, so we gotta change this, of course. So remember, RUT is the symbol on Schwab and and for most of the other brokers. If you just trade RUT though on Schwab, then you only get the monthly expirations. We are trading the June twenty sixth, expiration because that’s three weeks from today.

So we have to change it on Schwab to r u t w, on fidelity dot r u t w, I believe. And some of the other brokers have different ones. If you are new here and you can’t find this expiration, let everyone know in the chat what your broker is, and I’m sure somebody else is on it and will let you know, what the the correct symbol is. So it’s R U T W on Schwab, the June twenty sixth puts.

And we are going to trade the twenty seven nineties. We’re selling the twenty seven nineties. We’re gonna buy twenty seven eighties, and we got a credit of two forty five right now, in the midpoint. Just dropped to two thirty five.

But you can see, the midpoint here, we always are trading setting our limit price somewhere around that midpoint. We never are doing it at the market, which would be a dollar twenty. So you can see that big, big difference here. That’s why we’re always doing it around the midpoint.

So I’m gonna set mine at two point four zero just to try to give me a better chance of getting filled.

Alright. So let me just double check my work. Selling to open June twenty sixth, twenty seven point nine zero. Buy to open the twenty seven point eight zero. The midpoint, it just dropped, to two point three five.

And now I don’t think that’s because of us. Let me just see where the if the market just moved on. Yeah. Did just drop the Russell did fall a couple of points, since I did that.

I’m gonna leave it at two forty, give it a a little bit of time, see if we can if we can get filled at two forty. You know, just a few points here and there in the Russell might bring us back to it. So go ahead, place your order. Let me know if you do get filled at two forty.

I’m gonna go ahead and send out the official trade before I place my order.

There’s a motorcycle going by, of course.

I was really afraid that the construction would start to get loud, I did wanna show you this view.

Alright. I am sending out my order.

Alright. Getting filled.

Couple of people getting filled at two forty on Schwab. Excellent. Two thirty five, two forty. So I’m gonna go ahead. I sent it out, so I’m gonna go place my order, see what happens.

So I have not been filled yet. Let’s see if that changes anytime soon.

Yeah, I’m still open. Okay, so we’ll give it some time. If you’re new here, what typically happens is if we don’t get filled right away, if you don’t get filled right away, then we’ll give it a little bit of time. If the market moves away from us, then we will change the price, the limit price.

But I do wanna try to get filled at two forty. Sometimes it takes a little bit of time. It can take an hour. It can take several hours.

So I will update you throughout the day. If, you know, if we’re not getting filled and we need to change our price, I will be sending alerts throughout the day if that does not get filled.

Some people are getting filled at two forty. So Byron asked a question, June twenty six AM or June eighteen? So June twenty six only should have the PM options. The only time you have AM options are on the third Friday of the month, which would be June eighteenth. So our June eighteenth trade is the AM options.

That’s the AM expiration. June twenty sixth, that should not be that choice. It’s only PM. When you have the weekly options, it’s only the PM.

And and also speaking of the June eighteenth, just to be clear, so June eighteenth is a Thursday. Remember, the market is closed for the Juneteenth holiday on Friday, so we will do our weekly income broadcast and the new trade on June eighteenth, and the option does expire on June eighteenth also.

Oh, Pat says he’ll be in Portugal with wife and granddaughter next month. Awesome. Or next something.

Yeah. It’s it’s pretty awesome place. I’ve only been here for a day, and I’ve, never been here before. So just kinda last night, we just kinda walked around Lagos for a little bit and then got to bed pretty early because we were severe I wouldn’t even say jet lag. Were just exhausted because I don’t sleep on planes, unfortunately, and my wife isn’t great either with that. So we were passed out by ten o’clock. And the only reason we stayed up till ten was so that we didn’t wake up at, you know, four in the morning.

So Insor, who got the correct guess earlier about me being in Portugal, said, can you think of any reason why my wife’s Fidelity account always shows a higher midpoint for these trades than my account? My account showed two forty midpoint and hers showed two sixty five. Crazy.

I guess it could depend on which exchanges they’re sending the order to. You know, there are lots of exchanges. You know, we know about the Nasdaq and the and the New York Stock Exchange, obviously. But with options, there’s all kinds of electronic exchanges. So depending on which exchanges they’re getting quotes from, it’s possible that that midpoint could be higher.

I I was gonna say it could be you know, it’s kind of like a a moment in time where that’s happening, but if you’re saying it’s always showing that, I’m not sure it’d be I’d be interested if if you’re getting filled at that higher midpoint or if it’s just kind of being shown that. But really, you know, let’s say as you’re this example, you’re giving two forty on Schwab, two sixty five on Fidelity. But if orders are only getting filled at two forty, let’s say, on both brokerages, that would be interesting to know. If you are getting filled at the higher one, that’s, I’m not sure. I haven’t heard that yet. Really interesting.

Great, great, suggestion, Jerome. If your broker just lets you choose fill at best so they shop multiple exchanges. That’s really great advice. Thank you for that, Jerome.

Because, yes, brokers will, they get paid in many cases for order flow. So the exchanges will pay them. And it’s tiny, but, you know, over thousands and thousands of orders, it adds up. So the exchanges will pay them, let’s say a penny a share, a fraction of a penny, you know, whatever it is.

So they will often shop to the exchanges that will pay them the most. And in some cases, you may not get the best prices. And again, the difference is usually very, very small, but over, you know, you’re trading a few contracts every week over a lifetime, that does add up. And the money’s better in your pocket than theirs.

So, yes, great, great suggestion. Thank you, Jerome. If you can, Phil at best. I have to see if Schwab does that.

I don’t remember. I haven’t looked at something like that in a long time.

Someone’s not getting filled at two twenty. The market has yeah. The market’s bounced a little bit since we placed the order. Let me see if I got filled yet.

Let’s see.

Nope. I’m still open at two forty.

So, yeah, could could just take a little bit of time.

Not getting filled at two twenty would be a it’s a little surprising with the market having bounced a little bit.

How do you change your credit from two forty five to two forty? Close the order and do a reorder. Great question. Let me share my screen and show you. Let me just make sure. Okay. Let me share my screen for a second.

So, start off by going to your order status.

Okay. So here is my order status. So you can see, you know, in the last, few weeks, these are my filled trades and this current one right here is the open one. So these little three bars here, you can go to so you gotta click on the arrow. Either change or cancel. You don’t have to cancel it and redo it. Just hit change.

And then you can see the ticket comes up here.

And there’s a credit at two twenty, two fifty. It’s it’s going lower now. And you would just reduce the price here to whatever price you wanna do it at, and then hit review, and then hit send. I’m gonna I’m gonna leave it alone for now. Like I said, I wanna see if we can get filled at two forty.

It it’s down to two twenty at the midpoint, but, again, that doesn’t mean that we can’t get filled at two forty. If we get a little bit of a bounce in the Russell, I don’t see why we shouldn’t. So I’m gonna I’m gonna try to get that for, for myself and and for you if you’re sticking with it. And like I said, if if we need to change it later, we’ll change it.

So I’m just gonna cancel that. But that’s how you do it. So it’s always easier to change an order than to completely cancel it and and redo it. So that’s how that works.

Let me see. Did that stop sharing?

Okay. Let’s see. Waiting on two thirty five.

Let’s see. On Schwab, I cannot get June twenty sixth expiration.

Make sure you’re going to RUTW in that drop down menu, which is next to the expirations.

Where it says RUT. Click on that drop down. Underneath it, it’ll say RUTW, and then the other expirations should show up.

JDFlyer51 says, how far away does it have to move for you to cancel the order altogether? That’s a really good question.

I would say there’s not a specific number because generally speaking, I wanna give the market time to to kinda come back. Just because it is moving in one direction now doesn’t mean it’s not gonna not gonna bounce, or retreat the other way. So generally speaking, I try to give it time. You know, we place these orders at about ten fifteen. There’s a lot of action, you know, in that first hour of trading. And very, very often, obviously not always, but very often, the market will move in one direction, they kind of gyrate back in the other direction, and there’s, you know, a bit of movement in each direction, especially in that first hour, but even as you start to get a little bit further away from, let’s say, ten thirty.

So, I give it a little bit of time. So, I will say, generally speaking, if by eleven thirty or twelve the market has completely gone against us, then I’ll start thinking about repricing it.

But again, I want to see what the market looks like and what the charts look like, do I have a reason to think that it’s going to come back in our direction. So it’s not an exact science. It’s kind of really just watching the market in the morning and seeing where things are headed.

Let’s see. Rosemary, what does TOS stand for? Think or swim. That is Schwab’s, trading platform. So I show you, typically on on the Schwab’s website, but TOS is their trading platform, which, I’m I’m a big fan of. And I know Fidelity has a a really good platform also. I I always like to trade on the platforms better than the websites themselves, but, you know, do what makes you comfortable.

My expiration on Tasty Trades is June twenty fifth, not the twenty sixth.

Let me just take a look at something real quick. There is a June twenty fifth option that you can trade, but there should be a June twenty sixth as well because that’s Friday. But, yes, Schwab is showing a June twenty fifth option that you can trade, but, we’re trading the Friday option.

What else we got?

Powell B says, if you’re not filled in several hours, would you reset the strikes? Yeah. If if the market has really moved significantly away, then I would I would redo the whole trade. And knowing, yes, some people might have gotten filled at the original trade.

And if that happens, then, I would give guidance to, you know, to both groups. So let’s say let’s say the market moves against us and I have to lower the strikes to twenty seven seventy, twenty seven sixty, and some people got filled at that twenty seven ninety, twenty seven eighty, I would be the the and alright. Let me back up. Let’s say I have to redo the trade at twenty seven seventy, twenty seven sixty, and we get filled there.

So that’s the official trade. But knowing that some people would have gotten filled at twenty seven ninety, twenty seven eighty, I would certainly offer guidance in in for both trades. So it wouldn’t I wouldn’t leave you hanging. I’ll never do that.

JPW First Day, nice to be here. I need to get approval on Schwab for options. When you go on their website seeking approval, they ask if I want margin. You do need it to get so you do need it for the account.

Doesn’t mean you need to use it. You can have the account with enough cash that you’re not using, you know, marginal securities. That’s what I do. I only have cash in there.

I don’t have you know, I’m not holding stocks in that account that can then be used for for margin. I’m only using cash.

So, but you do need margin to be able to trade this way.

Tvill four thousand three hundred thirty four says how to tell the difference between an AM or PM order. So on the weekly options, so anything other than the third Friday of the month, it will always be a PM option. On the third Friday of the month, we get to choose whether we want an AM or PM option. That’s the only week that that should be available. So we’re typically going with the AMs, and it will show you what that it will show you, let me load up my screen again, and I’ll show you what that looks like. We don’t have to worry about that for two weeks, but I will show you.

How do I get that back? Alright. Let me do this.

Alright. Let me share my screen.

Okay. So if we were trading Alright. So if we were trading the June let’s see.

I don’t know. Something is not letting me okay.

So if we were trading this again, let’s say we’re doing June eighteenth.

Okay. So on Schwab, if we were trading the AM, that would show up just as the RUT symbol. Okay? The RUTs will always be the AM option.

If you go to RUTW, that will be the PM. That’s So if we decided we wanted to choose the PM, we would have to choose RUTW on Schwab. And again, Fidelity would be a little bit different. The others will be different as well.

But RUTW signifies that it’s a weekly option, and that would be the PM. The monthly would just be the regular symbol RUT, and that suggests that, not suggests, that means it is the monthly option. And the monthly option is the AM.

All right.

Mark Bear says if I place ten contracts at two forty, my credit should be twenty four hundred. I should see that immediately in my account when the trade is filled. I’m asking because I’m not seeing that account in Thinkorswim paper trading. It should be.

Yeah. That money hit your account right away. Doesn’t mean you can use it right away. So for example, if that’s the if that were the only money you had in the account, if you had a thousand dollars, which you need or you’re you’re trading ten contracts, so you need ten thousand dollars.

So if you had ten thousand dollars in the account and this was the only trade you were making and you made that trade, you would have to have that ten thousand dollars available at all times in case the trade goes bad and they need to take the money out of the account. If it’s a maximum loss situation, that ten thousand dollars would come out of the account. So you would not be able to, let’s say, take out two thousand five hundred dollars So if the two thousand four hundred hit your account and you wanted to take more money out of the account, the broker would ensure that you have at least ten thousand dollars in the account pay if the trade becomes a maximum loss.

Alright. Let’s see. We’ll get close to wrapping it up here. So Fidelity, we should only we should see only r u t for AM, not r u t w.

Correct.

That’s for but that’s only for the third Friday of the week.

Let’s see.

So ENSOR again, seems like people are liquidating crypto to get into AI and and space it’s not assumed. It means SpaceX. Fomo starting to look like a market top to me, a rational exuberance. You know, I have some definite thoughts about that.

I I, I do think that that the exuberance over AI, over SpaceX is signifying that we are closer to a top than perhaps a bottom. But, what that means and when that means, does that mean today, tomorrow, a month from now, three months from now? Very hard to say. Like I said, I’m not seeing signs in the market other than kind of this exuberance that we are about to turn, other than some kind of sentiment things like that.

Other things that have me concerned about that is, you know, something like S and P five hundred considering changing its, its rules to allow SpaceX. And you typically have to be a profitable company to be a member of the S and P five hundred. SpaceX is not, and they want to include SpaceX. No surprise.

It’s gonna be a giant market cap. It’s it’s there’s a a ton of excitement about it. I’m sure that folks at S and P think it’s gonna continue to go higher after the IPO, so they want that in the index to to fuel the index higher. To me, that’s something that happens closer to tops than bottoms.

So I am seeing those kinds of things, but I’m not seeing any kind of underlying deterioration in the market yet. I’m not seeing things like the AAII sentiment survey. I’m not seeing that at extreme levels yet. So I think we have a little bit further to go for all of those kind of things to line up.

And they’ll never line up perfectly, it’s going be impossible to call a top, as you know. But based on kind of my feelings and what I’ve seen in the past, I do think we have a little bit longer to go before the the end of this bull market. And maybe it goes a lot longer than I’m expecting. You know, there is so much excitement right now.

So these things can take, you know, many months to happen before something occurs. And maybe that something is the election in November. Who knows? You know, I I I could certainly see if the Democrats were to take the house, the market’s selling off on that news, that kind of being the the excuse for a sell off, and then, you know, that sends things considerably lower at that point.

It’s it’s very, very hard to say. I I if you if I had to guess and, you know, again, predicting a top is impossible. If I had to guess, I would say we are several months away from, from that happening. But, you know, we do need to be on our toes because I I agree with you that that there’s a I think this the exuberance over SpaceX, and AI is is is getting irrational.

Kathy says, so why are we doing the put trade versus the iron condors if there’s enough exuberance with the IPO coming? Because I’m not seeing any evidence. I’m I’m not a market timer. And I’m not gonna say, well, I think the market you know, there there’s some risk out there, so let’s get conservative.

Right now, the market is is doing nothing but going higher. So if I put on an iron condor and the market just continues to go higher, then we end up losing. So I need to see some evidence of things changing. So, you know, one thing to to know, and those of you who’ve been with me for a while know that, you know, me and and anybody else will never call that top.

It’s it’s it’s it’s impossible. So what I do is I let the market tell me what direction we’re going. The market’s strong. We’re selling put spreads.

The market changes, then we change. But we’re not gonna we’re not gonna make it that first week, you know? That that first time things change, you know, we might be caught learn we might be caught leaning the wrong way. It’s it’s it’s inevitable.

It’s a part of trading, whether you’re just trading stocks or trading anything.

You know, you if you especially when you’re trading if you’re a momentum trader, a technical trader, you’re trading trends, you’re trading things that are going up, then they stop going up. And it’s it’s not until they stop going up that you make your change. And that’s that’s basically what we’re doing here. Market’s strong.

I’m gonna keep trading put spreads. I’m not gonna try to guess when the market’s going down. And, you know, look, maybe if I guess correctly, I’m an absolute hero. But if I guess wrong, there was kind of no reason.

You know, there’s no reason to go against the market when it’s when it’s nothing but strength at this point. So, I’m not gonna I’m not gonna be that guy that’s just gonna try to guess and then be able to say, hey, look, see, I I called the top.

There’s there’s you leave too much money on the table trying to do that. Know, there there there are people who are perma bears who are always calling market tops, always saying things are going down, and their track records are terrible. And then when they do get it right, you know, the blind squirrel finds a nut once in a while, then they go, hey, see, look, I called it. I called it.

Yeah. You called the market top at, let’s say, Russell at two thousand eight hundred, but you also called it at two thousand seven hundred, two thousand six hundred, two five hundred, two thousand, fifteen hundred. You know, believe me, I used to work for a Perma Bear before I joined the Ostrich Club. And that’s the way Perma Bears operate.

They’re always bearish no matter what. And eventually they get it right and then they send out a big marketing campaign about how they were the only person that called the top. But they’ve been calling the top for twenty years straight. I’m not that guy.

I’m I’m trading the way the market is going. And then when the market signals that it’s not going up anymore, then we start making changes. But, yeah, I’m not gonna be that guy.

Chiller q. Called thirty five of the last three downturns.

Exactly. Exactly. Max says, Marc, where are you? I am in Portugal. I guess you tuned in late.

That was the big, the big news. So a few of you have gotten filled at two thirty five. That is good to see. Let me see if I got filled real quick before we sign off.

No. It doesn’t look like it. No. I’m still open at two forty. Like I said, I will send out an alert if we need to make a change, and lower the price.

But I’m I’m gonna give it another, at least another half hour to an hour.

So keep an eye on your inbox if you haven’t gone filled and we need to make a change to that. So with that said, I will head out because it’s starting to get loud with all the construction behind me. Have a great weekend everyone, and I will be back in Florida at my studio next week. So take care everyone, and have a great weekend.