Cabot Wealth Network

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Covered calls are one of the simplest strategies in options trading, as you buy the stock, sell a call against it and collect income. This trade works great in a sideways market. And a trade we made at Cabot Options Trader in Ford (F) is a perfect real-world example of this strategy. Let’s break it down. The Original Trade We bought 100 shares of F stock at $14.53 and immediately sold the July 15 Call for $0.87 in premium. That brought our cost basis down to $13.66 right out of the gate.

A couple of days ago, I received an email from a subscriber who asked me what I thought about market timing. The following graphs depict exactly what I think about market timing—which is, it’s not a good idea for most investors! “The chart below shows a hypothetical investment of $10,000 in stocks over a 20-year period. An investor who stayed invested over that time period would have made 58% more than one who missed just the five best-performing days,” according to BlackRock.

Between 2009 and 2022, cash was almost a dirty word for investors. Why hold cash and get 1% when you can buy a stock and fairly reliably get 10%, 25% or more? And of course, bonds weren’t much different. How times have changed! Overall, the stock market has remained strong since 2022, even if for much of that time it was the Magnificent 7 (or at least some of them) that were doing most of the heavy lifting.

The rise of agentic AI in early 2026 kicked off what’s come to be known as the “SaaSpocalypse,” a massive selloff in enterprise software grounded in the premise that LLMs had put an expiration date on the SaaS business model. Salesforce (CRM), one of the companies most closely associated with SaaS in the first place, became a favorite target, falling as much as 43% in the first half of 2026 alone.

If you get the feeling that more people are talking about the potential for a coming stock market crash, you’re not imagining it. As it turns out, there has lately been a discernible increase in news sites and blog posts talking about a possible bearish turn for stocks in the coming weeks and months. From a seasonal aspect, it’s not terribly surprising that we’re seeing this uptake in investor concerns.

As of this week, my Cabot Insider Edge portfolio was up 17.35% since inception on June 10, 2026, compared to 4.56% for the S&P 500 exchange-traded fund (SPY), despite the headwind of a cash position. Six of the positions were up double digits. Three were up 25%-60%. All outperformed the market. There were no losers. This is positive performance, and I’m happy to see my system for reading the insider buy signals remains effective. But I’m resisting exuberance, for two reasons.

NATO was formed in 1949 when the United States and 10 European nations signed the North Atlantic Treaty in Washington, D.C. By most accounts, it has been very successful. Not one American has died defending Europe since its launch, as it deterred the Soviet Union during the Cold War and, up to Ukraine, deterred Russia. U.S. troop levels in Europe have declined from roughly 400,000 to 75,000 today.

Barron’s recently published a thoughtful interview with Samantha Dart, the co-head of global commodities research at Goldman Sachs. I think it’s worth mentioning here since she touched on several of the themes that I’ve repeatedly discussed this year in the Cabot Turnaround Letter. As an analyst who is heavily focused on the resources sector, Dart’s views on commodities will obviously carry a degree of professional bias.

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