Over the past few years, I’ve used options as a way to generate consistent income from stocks I own or follow closely. Like many traders, I gravitated toward weekly options. They’re fast, frequent, and seemingly efficient. Whether I was writing covered calls on MicroStrategy or selling cash-secured puts on Alphabet, the weekly premiums felt like a reliable source of cash flow.

But recently, I made a strategic shift: I’m moving away from weekly options and focusing on monthly full-term options instead. After diving deeper into the mechanics of option pricing, execution, and market structure, I’ve realized that monthlies offer superior performance in most real-world trading scenarios.

Here’s what changed my mind, and why you might want to reconsider your own approach if you’re still using weeklies as your default.

Weekly Options: What I Was Doing

My earlier approach centered around short-term trades. I’d sell weekly calls or puts to collect premium, targeting short-term moves in names like MicroStrategy (MSTR), Tesla, or Alphabet. The appeal was obvious:

• Faster income cycles
• High annualized returns (on paper)
• Tactical flexibility

But in practice, I noticed several recurring issues:

• Wider bid/ask spreads on anything beyond the front-week
• Low open interest and less competitive pricing
• Higher gamma risk near expiry
• Constant need to monitor, manage, and roll positions

These frictions slowly eroded returns and added more stress than necessary.

Enter the Monthly, Full-Term Option

So what is a full-term monthly option? It’s the option that expires on the third Friday of each month. These were the original standardized options listed by the Options Clearing Corporation (OCC) when listed options began trading in the 1970s.

Weekly options, on the other hand, were introduced much later (2005 by CBOE) to meet demand for more flexibility and short-term trading instruments. While they serve a purpose, they were essentially bolted on to the original system.

And it shows.

The Structural Advantage of Monthly Options

1. More Premium in Real Terms
   Monthly options consistently offer more time value per trade. Yes, weeklies may look more “efficient” per day on paper, but in practice, monthlies return more net premium due to better execution and tighter spreads.
2. Superior Liquidity and Tighter Spreads
   Market makers prioritize monthly expiries. The bid/ask spreads are narrower, meaning you lose less on the buy and sell side.
3. Better Open Interest and Volume
   Full-term options attract more traders. More liquidity = better fills and less slippage.
4. Simpler Management and Rolling
   Weekly positions expire quickly, requiring more active management. Monthly options give you breathing room to manage positions deliberately.
5. Lower Gamma Risk
   As weekly options approach expiration, price sensitivity (gamma) spikes. With monthlies, that curve is smoother.

If You’re Holding for a Month Anyway, Use the Monthly

This was a big insight for me: I realized that even though I was trading weekly options, I was often holding them for 2–4 weeks before rolling or closing. So why not start with the monthly to begin with?

Instead of targeting an August 30th expiry (a weekly), I now look at the August 16th full-term option. Or even better, go out to September 20th, sell the call, and manage or roll it earlier if needed.

You’re not locked in. You’re just operating on more favorable terms.

Why Weeklies Can Look Tempting: Volatility Magnifies the Premium

One of the big reasons I leaned into weekly options — especially with names like MicroStrategy (MSTR) — was the sheer volatility. When a stock regularly moves 5–10% in a week, the premiums on short-dated options get inflated fast. That meant:

• Juicy implied volatility (IV) priced into the premiums
• The ability to quickly collect income, sometimes multiple times in a month
• An opportunity to sell rich options even when far out-of-the-money

And it worked — for a while. MSTR’s wild swings made weeklies feel like an income machine. But as I looked deeper, I realized that those rich premiums came at a cost:

• Assignments became more frequent and harder to control
• Bid/ask spreads on later-dated weeklies were sloppy
• Managing positions every few days started to feel like a job

It became clear that even in high-IV environments, the structural advantages of monthly options often win out, especially when you’re trading size or managing a portfolio systematically.

Are High IV Weeklies Really That Much Better?

It’s true that weekly options often show higher implied volatility per day than monthlies. On paper, that makes them look more profitable. But here’s the reality:

Issue	Why It Hurts Weeklies
Wider bid/ask spreads	Slippage reduces your actual collected premium
Thin open interest	Poor fills or difficulty closing positions
Gamma spikes	Rapid, unpredictable price moves near expiry
More frequent management	More trades = more fees + more stress
Assignment risk	Especially with short-dated ITM options

So while weeklies may look more profitable in high-volatility stocks, monthlies often deliver more net premium with less friction, especially when scaled.

Who Weekly Options Are Still Good For

Despite all the advantages of monthly options, there are still specific situations—and traders—for whom weeklies make sense.

• Earnings Plays & Volatility Events: Traders who want to sell options around earnings or Fed announcements often prefer weeklies for their precision. The ability to target a specific date lets you isolate risk to that event window.
• Short-Term Directional Bets: If you’re speculating on a 1–3 day move in a stock, weeklies give you the cheapest and most gamma-sensitive exposure.
• Scalpers and Day Traders: Those managing trades by the hour or day often favor weeklies for their fast-moving nature. They’re nimble tools in the hands of professionals.
• High IV Environments: In stocks with elevated implied volatility (like MSTR), weeklies may offer juicy premiums that justify the risks—if managed closely.
• Exit Tactics: If a monthly covered call is expiring in-the-money, you may prefer to let the shares get called away and switch to puts rather than roll at a poor price. This can be a cleaner transition than forcing a roll for little premium or upside.

In short, weeklies are best for traders who are both tactically aggressive and highly active. They require more time, tighter discipline, and the ability to move quickly. They’re not inherently bad—but they’re often used inefficiently by traders who would be better off with the stability and performance of full-term options.

Final Thoughts

Weekly options are great for tactical plays, earnings speculation, or quick gamma scalps. But for consistent income, clean execution, and strategic control, monthly full-term options are superior.

This isn’t just theory. It’s a shift I’ve made in my own trading, and it’s already improved both my performance and my peace of mind.

If you’re looking for less friction, better fills, and stronger long-term returns, consider making the switch.

Monthly might not sound exciting—but it works.

Investing across borders opens up new opportunities for yield, growth, and diversification. But with international investing comes exposure to foreign currencies—and that means currency risk.If your home currency is the euro, US dollar, or any other, and you invest in assets priced in a different currency (like the British pound, Japanese yen, or Swiss franc), shifts in exchange rates will impact your actual return. Even if the investment performs well in local terms, currency fluctuations can boost or shrink your returns once converted back.Fortunately, there are effective strategies to manage this risk. Below are three simple approaches retail investors can use—along with a deeper look into how currency-hedged ETFs actually work.

1. Use Currency-Hedged ETFs

Best for: Investors who prefer a hands-off approach

Many ETF providers offer currency-hedged versions of their funds. These are designed to deliver the performance of the underlying investments while neutralizing the impact of currency movements relative to your base currency.

How does this work in practice?

Fund providers use rolling forward contracts—agreements to exchange currencies at a set rate on a future date. Each month (or sometimes weekly), the ETF manager enters into new contracts that match the value of the underlying portfolio. If the foreign currency weakens, gains from the forward contract offset the loss. If the currency strengthens, the gain in value is canceled out—but your exposure remains aligned with the core asset, not the currency.

This type of hedging is mechanical and systematic, often with little to no day-to-day impact for the investor. You just hold the fund as you would any normal ETF.

Examples for euro-based investors:

• iShares MSCI Japan EUR Hedged UCITS ETF
• Xtrackers FTSE 100 EUR Hedged UCITS ETF

How to do it:

• Log into your brokerage account
• Search for the hedged version of the fund (look for your currency and the word “hedged” in the name)
• Review the factsheet to confirm hedging frequency and method
• Buy as you would with any ETF

This approach works well when your goal is to track the equity or bond performance of a specific market, without letting currency fluctuations interfere.

2. Build a Natural Hedge Through Portfolio Diversification

Best for: Long-term investors with global exposure

A natural hedge uses the principle of balance. By holding assets in different currencies and regions, you avoid the risk of being overly exposed to just one. If one currency drops, gains in others may cushion the impact.

For example, an investor who holds:

• US stocks (USD exposure)
• Eurozone real estate (EUR exposure)
• UK dividend stocks (GBP exposure)
• A global bond ETF (mixed currency exposure)

…is unlikely to suffer major damage from a single currency movement.

How to do it:

• Analyze your portfolio by currency exposure
• Identify concentration risks
• Add international exposure gradually across geographies
• Rebalance once or twice a year

This approach relies on long-term alignment and reduces the need for ongoing management or financial products.

3. Use Forward Currency Contracts (with Help)

Best for: Larger portfolios or investors working with private banks or advisors

Forward contracts allow you to lock in a specific exchange rate for a future transaction. These are useful if you expect to sell an asset or receive dividends and want to fix the future cash flow in your local currency.

Banks or asset managers typically manage this process. For example, an investor planning to repatriate £100,000 from a UK investment next year might agree to exchange it at a fixed rate today, protecting against adverse currency moves.

How to do it:

• Contact your advisor or bank
• Ask about currency hedging using forwards
• Match contract dates with your expected income or exits

Final Thoughts

Global investing introduces currency risk, but this doesn’t need to be a source of stress. Whether you prefer the simplicity of a hedged ETF or the elegance of long-term portfolio balance, you have the tools to control your exposure. Choose the method that fits your strategy and move forward with confidence.

In the global investing landscape, the UK stock market often flies under the radar. It lacks the tech-heavy glamour of the US or the hyper-growth potential of emerging markets. Yet, a recent conversation with a long-time UK-based investor made me pause.

His portfolio, rooted in FTSE 100 stalwarts and selectively chosen high-value companies, has not only weathered market cycles but consistently produced impressive dividend income.>Notably, he didn’t just stick to broad index funds—he identified undervalued opportunities based on balance sheet strength and forward-looking fundamentals.

This prompted a deeper question: Does it make sense for a global investor to allocate part of their portfolio to UK equities? Let’s explore the strategic case for doing so.

1. Attractive Dividend Yields

The UK stock market is renowned for its high dividend yields. The FTSE 100 consistently offers a yield in the 3.5% to 4.5% range, often significantly higher than other developed markets.

Why? UK companies traditionally place a strong emphasis on returning capital to shareholders, and the market composition includes mature, cash-rich sectors like energy, financials, tobacco, and mining. These industries tend to support higher dividends because:

• They are capital-intensive but mature: With limited reinvestment opportunities for rapid expansion, these companies often distribute excess profits to shareholders.
• They generate steady, predictable cash flows: Utilities, oil majors, insurers, and tobacco companies typically operate in sectors with relatively stable demand, which enables consistent dividend payments.
• They are structurally profitable: Many benefit from strong pricing power, long-term contracts, or regulatory protections that support margins even during economic downturns.

Noteworthy examples include:

• British American Tobacco (BATS) – Yield ~5.7–6.0%
• Legal & General (LGEN) – Yield ~8.4–8.6%
• M&G (MNG) – Yield ~7.8–8.0%
• Phoenix Group (PHNX) – Yield ~8.3–8.6%

For investors focused on income, these yields remain very competitive—especially when compared to global peers, where 2–4% is often considered high. UK equities offer a rare combination of dividend consistency and attractive valuation that income-seeking investors should not overlook.

2. Diversification by Sector and Style

UK equities offer diversification benefits that go beyond geography. Many global portfolios today are heavily tilted toward growth-oriented tech, especially those focused on US or pan-European indices. The UK, by contrast, has a value tilt and is concentrated in sectors like:

• Energy and Resources: Shell, BP, Rio Tinto
• Financial Services: HSBC, Lloyds, Prudential
• Consumer Staples: Unilever, Diageo

This concentration and value bias are rooted in the historical and structural makeup of the UK economy. Unlike the US, which has fostered a vibrant ecosystem of high-growth technology firms, the UK’s capital markets have long been dominated by mature industries that emerged during its industrial and colonial past. Many of these sectors—such as oil, banking, and insurance—continue to play a central role in the UK’s economy and capital markets.

Furthermore, London’s role as a global financial hub has attracted listings from multinational companies that generate most of their revenue overseas but are valued on more traditional fundamentals like cash flow, dividends, and asset strength. This reinforces the market’s identity as a haven for income and value investors rather than growth chasers.

This makes UK equities a useful counterbalance to growth-heavy allocations. They also tend to perform better in inflationary environments or when interest rates rise, offering a form of macroeconomic hedging.

3. Valuation Discounts

UK equities trade at a meaningful discount to peers in the US and Europe. The FTSE 100 typically shows a forward P/E ratio in the 11–13x range, compared to 15–20x for the Euro Stoxx 50 and even higher for the S&P 500.

This discount is often attributed to:

• Brexit overhang and political uncertainty
• Sector mix that lacks high-growth tech
• Low domestic GDP growth

However, for long-term investors, valuation gaps of this magnitude can signal opportunity rather than weakness.

3a. Recent Tailwinds and Outperformance

Over the past two years, UK equities have enjoyed a notable run, with several large- and mid-cap names delivering substantial returns—some even doubling in value. This outperformance has been fueled by a combination of macroeconomic and structural tailwinds:

• Commodities and Energy Boom: Rising oil, gas, and commodity prices have significantly boosted profits and valuations for firms like Shell, BP, and Glencore.
• Weak Pound Sterling: A subdued GBP has inflated the value of foreign earnings when translated back to sterling—especially important since over 70% of FTSE 100 revenues come from abroad.
• Rising Interest Rates: The UK’s large financial sector has benefited from improved margins on lending and underwriting.
• Valuation Re-Rating: Many UK stocks began to re-rate as global capital returned in search of value and income.

An additional opportunity lies in potential acquisitions. Many UK-listed companies, particularly mid-cap and small-cap firms, are trading at valuations that make them attractive targets for larger global—often US-based—corporations. With the pound remaining relatively weak, UK assets are more affordable for foreign buyers, creating upside for existing shareholders.

4. Favorable Tax Treatment of Dividends

One of the standout advantages of UK equities is that the UK does not impose a withholding tax on dividends paid to non-residents. This is in stark contrast to many other European countries, where withholding taxes can range from 15% to 30%, often with complex refund procedures. As a result, non-UK investors receive dividend income gross, improving overall yield potential.

This benefit becomes even more powerful when combined with residence or structuring in tax-favorable jurisdictions. Here are a few notable examples:

• Malta: Through its full imputation system and tax refund mechanism, Maltese holding companies can receive dividends tax-free and remit them with partial refunds to shareholders. Foreign-sourced dividends are often not taxed at the personal level if structured via the remittance basis or through participation exemptions.
• Cyprus: Under the non-domicile regime, individuals who qualify as “non-doms” are exempt from taxes on worldwide dividends for 17 years. Many investors use Cyprus personal residency or holding company setups to shield passive income from tax entirely.
• Dubai (UAE): There is no personal income tax in the UAE. Both individuals and companies domiciled in Dubai can receive foreign dividends without any local taxation, making it highly attractive for high-net-worth investors and global entrepreneurs.
• Singapore: Singapore does not tax foreign dividends received by individuals, provided they are not remitted in a way deemed part of a business. For companies, exemptions or territorial-based rules may also apply. The country’s stable rule of law and pro-investor tax policy enhance its appeal.

In all these jurisdictions, the combination of no UK withholding tax and low or zero local tax can result in entirely tax-free dividend income—especially when using company structures, trusts, or appropriate personal residency status.

However, local tax treatment will ultimately depend on an investor’s personal tax residency, structuring, and remittance behavior. It is therefore advisable to consult with an international tax advisor before acting on these advantages.

5. Currency Exposure

For euro-based or other non-GBP investors, currency fluctuations add a layer of risk (or opportunity). A weak pound can drag on returns when repatriated, but a strengthening pound boosts your income and capital gains in local currency terms.

Investors can hedge this exposure in several ways:

• Currency-hedged ETFs: GBP-hedged versions of UK equity ETFs.
• Forward contracts or FX options: Used to lock in exchange rates.
• Natural hedging: Diversifying across multiple currencies in your portfolio.

Hedging adds complexity and potential cost, but it can protect purchasing power and stabilize returns over shorter investment horizons.

6. Access and Liquidity

London-listed shares are easily accessible via most international brokers. Platforms like Interactive Brokers, DEGIRO, or Saxo Bank offer direct access. Many UK companies also trade as ADRs on foreign exchanges, but direct LSE access often provides better liquidity and pricing.

For ETF investors, options include:

• iShares Core FTSE 100 UCITS ETF (ISF)
• Vanguard FTSE UK Equity Income Index Fund

7. Risks to Keep in Mind

• Sector concentration: Heavy weight in energy and finance.
• Political and regulatory risks: The UK continues to face policy instability and leadership turnover.
• Diminished geopolitical influence: The UK is no longer considered a global economic or political leader by many investors.
• Growth limitations: Sluggish domestic economy and limited tech/innovation exposure.

These are not reasons to avoid UK stocks outright, but they suggest the market should be seen as a complementary allocation, not the core of a global equity portfolio.

8. Who Should Consider UK Equities?

• Income-focused retirees or near-retirees
• Value-oriented investors
• Global diversification seekers
• Investors who value legal transparency in an English-speaking jurisdiction
• Residents in tax-favorable jurisdictions
• Contrarian investors betting on UK recovery and acquisitions

UK equities serve as a compelling complement—especially when income, diversification, and defensiveness are top priorities.

Conclusion: A Strategic Income and Diversification Play

For income-oriented investors or those seeking valuation discipline, the UK market is worth serious consideration. High dividend yields, no withholding tax, sectoral diversification, and valuation discounts make it a strong candidate for inclusion in a well-rounded global portfolio.

While the UK may not offer the explosive growth of tech or emerging markets, it provides consistency, cash flow, and a counterweight to dominant market narratives. For European investors in particular, it’s geographically close, structurally accessible, and fiscally efficient.

In an era of market froth and stretched valuations, that quiet dependability may be just what your portfolio needs.

Options trading often boils down to one critical decision: should you let your position expire or close it early? This choice is relevant for both buyers and sellers of calls and puts. In this article, I’ll break down the scenarios for each type of option—long calls, short calls, long puts, and short puts—and provide practical tips for making the best decision.

The Four Scenarios

1. Long Call Options

When you buy a call option, you’re paying for the right to buy the underlying stock at the strike price.

• If Held to Expiry:
  • In the Money (ITM): You can exercise the option to buy the stock at the strike price, locking in the intrinsic value (difference between stock price and strike price).
  • Out of the Money (OTM): The option expires worthless, and your loss is limited to the premium paid.
• If Closed Early:
  Selling the option at its current market price lets you capture both intrinsic value and remaining time value. This strategy can protect against the risk of stock price reversal.

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2. Short Call Options

Selling a call obligates you to sell the underlying stock at the strike price if the buyer exercises the option.

• If Held to Expiry:
  • ITM: You must sell the stock at the strike price, resulting in a loss if the market price is higher.
  • OTM: The option expires worthless, and you keep the premium received as profit.
• If Closed Early:
  Buying back the call caps your losses if the stock price is rising. However, it may also limit potential profits if the stock reverses and the option becomes OTM.

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3. Long Put Options

Buying a put gives you the right to sell the underlying stock at the strike price.

• If Held to Expiry:
  • ITM: You can sell the stock at the strike price, profiting from the difference between the strike price and market price.
  • OTM: The option expires worthless, and your loss is the premium paid.
• If Closed Early:
  Selling the put at its current market price lets you capture remaining value, especially if there’s significant time value left. This avoids the risk of the stock reversing direction.

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4. Short Put Options

Selling a put obligates you to buy the underlying stock at the strike price if the buyer exercises the option.

• If Held to Expiry:
  • ITM: You must buy the stock at the strike price, potentially incurring a loss if the market price is lower.
  • OTM: The option expires worthless, and you keep the premium received.
• If Closed Early:
  Buying back the put prevents further losses if the stock price is falling, but it may cost more than letting it expire if the stock stabilizes.

Key Factors to Consider Across Scenarios

1. Time Value

• For long options, closing early can capture the remaining time value.
• For short options, time value decays in your favor, so waiting until expiry can be beneficial unless the position moves ITM.

2. Stock Price Movement

• Predicting the stock’s direction is critical:
  • For calls, a bullish move increases value for long positions and risk for short positions.
  • For puts, a bearish move does the same.

3. Premium Received or Paid

• Sellers (short calls/puts): The premium received offsets some losses if the option moves ITM.
• Buyers (long calls/puts): The premium paid is the maximum risk for OTM options.

Example Scenario: Short Call on Amazon

Let’s use Amazon (AMZN) as an example to break down this decision in a simple, realistic way.

You sold 20 short call options on Amazon with a strike price of $200, and they expire in three days. Amazon’s current stock price is $210, meaning the options are in the money (ITM). When you sold the options, you earned a premium of $2 per option (a total of $4,000).

Now you’re deciding whether to:

1. Let the options expire and settle them at expiry, or
2. Buy them back today to close the position and limit your risk.

Key Factors to Consider

1. Premium Received

When you sold the options, you earned $2 per option, giving you $4,000. This premium offsets some of your potential losses and is a critical part of your calculation.

2. Current Option Price

The market price for the call options today is $11 per option, reflecting their intrinsic value (stock price minus strike price) and a small remaining time value.

3. Intrinsic Value vs. Time Value

Intrinsic Value: The amount by which the stock price exceeds the strike price. For these options:
$210 (current price) – $200 (strike price) = $10 per option.

Time Value: The extra cost due to time left until expiration. In this case:
$11 (current price) – $10 (intrinsic value) = $1 per option.

If you let the options expire, the time value of $1 will decay to zero, saving you that extra cost.

Scenario Analysis

Option 1: Let the Options Expire

If you let the options expire, the buyer will exercise them because they are ITM. You will need to deliver the shares at $200 per share.

• Intrinsic Loss Per Option: $210 (market price) – $200 (strike price) = $10.
• Total Loss: $10 × 20 contracts × 100 shares = $20,000.
• Adjusted for Premium Received: $20,000 – $4,000 = $16,000 (net loss).

Option 2: Buy Back the Options Today

If you buy the options back at the current price of $11, you’ll pay:

• Cost Per Option: $11.
• Total Cost: $11 × 20 contracts × 100 shares = $22,000.
• Adjusted for Premium Received: $22,000 – $4,000 = $18,000 (net loss).

Comparison of Outcomes

Scenario	Total Loss	Premium Offset	Net Loss
Let Options Expire	$20,000	$4,000	$16,000
Buy Back Today	$22,000	$4,000	$18,000

In this scenario, letting the options expire is the more cost-effective choice, saving you $2,000. However, this assumes that Amazon’s stock price does not rise significantly before expiry. If you believe there’s a strong chance of further price increases, buying back the options might be worth the extra cost to avoid potential larger losses.

Key Risks and Considerations

• Stock Price Movement: If Amazon’s stock price rises above $210 in the next three days, your losses will increase. For example, at $215, your total loss becomes $15 per share × 20 × 100 = $30,000 before premiums.
• Time Decay (Theta): With only three days left, the time value of $1 per option will disappear. By letting the options expire, you avoid paying for this time value.
• Risk Tolerance: If you’re uncomfortable with the possibility of Amazon rising sharply, buying back now eliminates your risk of further losses.

Practical Tips for Managing Options

1. Set Alerts: Use trading platforms to set alerts for critical price levels. These help you react quickly to market changes without constantly monitoring the stock.
2. Roll Positions: If you’re concerned about short-term price movements, consider rolling the position to a later expiry date. For example:
   • Long Options: Roll to give the stock more time to move in your favor.
   • Short Options: Roll to reduce immediate risk and collect additional premium.
3. Hedge Your Position: Offset risks by hedging with shares or other options:
   • Long options can be hedged with short options (e.g., a covered call or protective put).
   • Short options can be hedged by holding shares of the underlying stock.

Tax Implications: Exercise vs. Closing Early

In Europe, tax treatment varies by country, but generally, exercising an option to sell or buy the underlying stock triggers a separate taxable event, which may be taxed as a capital gain or loss based on the stock’s cost basis. In contrast, closing the option early (buying or selling the option itself) simplifies tax reporting since only the option transaction is taxed. Closing early can also accelerate income recognition into the current tax year, while exercise may offer more flexibility for offsetting gains or losses depending on the timing.

Conclusion

The decision to let options expire or close them early depends on the specific scenario and your market outlook. Use tools like alerts, hedging, and rolling to manage your risk effectively. Whether you’re buying or selling calls or puts, a clear understanding of the dynamics at play will help you make the best decisions for your portfolio.

What’s your preferred strategy for managing options positions? Share your thoughts or questions in the comments!

I believe a few sectors will flourish under the Trump administration, having been suppressed under the Democrats for the past years. I’m also taking into consideration new technological advances like AI, as well as geopolitical issues like the shaky relationship between China and the USA, as well as the unpredictability of Russia.

I use brokers like SaxoTrader and DEGIRO for trading stocks, and while I’m not a day trader, I love to take a few bets in addition to my long-term portfolio which mainly consists of the SP500 index ETF and some other broadly diversified holdings.

As Donald Trump returns to the presidency, several sectors are poised for significant growth under anticipated policy shifts. With reduced regulations, a focus on domestic industries, and a push for technological advancements, investors have exciting opportunities ahead. Here are some ideas I’m thinking about.

Bitcoin and Cryptocurrency

Under the Biden administration, the cryptocurrency sector faced significant challenges, including Operation Chokepoint 2.0, which stifled innovation and cast doubt on the industry’s future. With Trump’s return, the regulatory environment could shift, fostering renewed growth and innovation in the crypto space.

Investment Opportunities

• Coinbase (COIN): As a leading cryptocurrency exchange, Coinbase is poised to capitalize on regulatory relief and increased trading activity.
• MicroStrategy Incorporated (MSTR): With substantial Bitcoin holdings, MicroStrategy stands to benefit directly from a resurgence in Bitcoin’s prominence.
• iShares Bitcoin Trust ETF (IBIT): Offered by BlackRock, it is a Bitcoin ETF available in the USA and not directly accessible to European investors due to regulatory differences. It has a low expense ratio of 0.25% and closely tracks the price of Bitcoin, making it popular among investors in markets where it is available.
• 21Shares Bitcoin Core ETP (CBTC): This exchange-traded product (ETP) is available to European investors, is domiciled in Switzerland and offers a highly competitive total expense ratio of 0.21% per annum. It’s my favorite way to get exposure to Bitcoin and what I recommend to anyone who wants to add Bitcoin to their portfolio.

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Artificial Intelligence and Semiconductor Manufacturing

Artificial intelligence (AI) continues to reshape industries globally, and semiconductor manufacturing is at the core of this transformation. With policies expected to promote innovation and strengthen domestic production, the U.S. could emerge as a leader in AI and chip technologies under the Trump administration.

Investment Opportunities

• NVIDIA Corporation (NVDA): A market leader in GPUs and AI processors, NVIDIA is at the forefront of AI advancements and data center technologies.
• Advanced Micro Devices (AMD): With cutting-edge processors and strong market momentum, AMD is poised for continued growth in AI applications and computing power.
• Taiwan Semiconductor Manufacturing Company (TSMC): As the world’s largest contract chipmaker, TSMC is crucial to AI and advanced computing, providing essential chips for numerous applications.

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Nuclear Energy

Real progress in addressing climate change hinges on technological innovation rather than pipe dreams of limiting human consumption of fossil fuels. With Trump’s administration likely to promote practical solutions over restrictive fossil fuel policies, nuclear energy is positioned for a renaissance. Today’s nuclear technology is much safer and more efficient, making it a key player in the energy landscape.

Investment Opportunities

• Exelon Corporation (EXC): A leader in nuclear energy, Exelon is set to benefit from increased governmental and private-sector support.
• Global X Uranium ETF (URA): This ETF offers exposure to uranium miners, a critical component of the nuclear energy supply chain.
• NextEra Energy (NEE): Balancing nuclear capabilities with renewable energy projects, NextEra presents a compelling investment option.

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Defense and Aerospace

As global security challenges evolve, the defense sector is pivoting towards cost-effective solutions like drone technology. Trump’s focus on strengthening the military is likely to drive increased funding for cutting-edge defense and aerospace initiatives.

Investment Opportunities

• Northrop Grumman (NOC): Renowned for its advancements in drone technology, Northrop Grumman is well-positioned to lead the shift towards unmanned aerial solutions.
• iShares U.S. Aerospace & Defense ETF (ITA): This ETF provides diversified exposure to leading U.S. defense companies, ideal for benefiting from heightened defense spending.
• Lockheed Martin (LMT): With expertise in aerospace and cutting-edge defense systems, Lockheed Martin remains a cornerstone of the sector.

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Banking and Finance

Under Trump’s administration, financial institutions can expect regulatory rollbacks that open avenues for growth. Relaxed compliance requirements and favorable monetary policies could boost profitability across the sector.

Investment Opportunities

• JPMorgan Chase & Co. (JPM): Positioned to capitalize on relaxed regulations and interest rate shifts, JPMorgan is a top pick in the financial sector.
• Financial Select Sector SPDR ETF (XLF): Offering broad exposure to banks and financial institutions, this ETF balances risk and growth potential.
• Goldman Sachs (GS): Known for its strategic innovation, Goldman Sachs is poised to benefit from market-friendly policies and expanded financial products.

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Automotive and Manufacturing

Trump’s focus on reviving domestic manufacturing is likely to rejuvenate the automotive sector. Tariffs and incentives for local production could significantly benefit American automakers.

Investment Opportunities

• Ford Motor Company (F): With policies favoring American manufacturers, Ford stands to gain from a resurgence in domestic production.
• First Trust NASDAQ Global Auto Index Fund (CARZ): This ETF ensures diversified exposure to global automotive manufacturers.
• General Motors (GM): Investments in electric and hybrid vehicles align with policies supporting domestic innovation.

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Construction and Infrastructure

Trump’s administration has consistently emphasized infrastructure development as a cornerstone of economic growth. An increase in federal spending on public works projects could stimulate the construction sector significantly.

Investment Opportunities

• Caterpillar Inc. (CAT): A global leader in construction equipment, Caterpillar is positioned to benefit from an infrastructure boom.
• iShares U.S. Infrastructure ETF (IFRA): This ETF provides diversified exposure to companies involved in infrastructure development.
• Vulcan Materials Company (VMC): As a major supplier of construction aggregates, Vulcan is set to thrive under increased demand.

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Energy Sector

Trump’s balanced approach to energy—supporting traditional fossil fuels while encouraging renewables—is likely to spur growth across the sector. Energy companies could see increased production and profitability under favorable policies.

Investment Opportunities

• ExxonMobil (XOM): With extensive fossil fuel operations and renewable initiatives, ExxonMobil is a key player in the sector.
• Energy Select Sector SPDR Fund (XLE): Offering diverse exposure to leading energy companies, this ETF is ideal for capturing sector-wide growth.
• NextEra Energy (NEE): Combining nuclear and renewable energy strategies, NextEra is positioned for success under a pragmatic energy policy.

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Conclusion

Investors who understand the dynamics of a Trump-led administration can position themselves to take full advantage of the opportunities that arise. By focusing parts of our portfolios on these sectors that are poised for resurgence or explosive growth, we can take advantage of this upcoming potential economic transformation. The key is to act strategically, staying informed and prepared to adapt to evolving market conditions, as we can also expect a few unpredictable moves from Trump in the next 4 years.

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I’d love to hear your thoughts on what investments are likely to deliver index-beating results over the next presidential term. Let me know in the comments section below.