Chiefs Winning Dumping the Markets? No, Trump's Trade War with Colombia Heats Up: Futures Plunge 1% Overnight!

The Tarriff War Has Officially Begun. Trump imposed a 25% tarriff on Columbian imports today after Columbia refused to accept flights for deporting migrants from the US.

Trump is using Columbia as an example to tell the world his consequences for refusing to accept deportation flights. He also imposed Visa sanctions on Columbian government supporters after the refusal.

Columbia retaliated by imposing a 25% tarriff on US imports.

This is already causing turmoil in the markets, as Nasdaq futures are now down 1.27% predicting tomorrows volatility, and S&P 500 futures are down 0.64%.

For the last couple months, most of the time when the stock market has dumped, mortgage rates have gotten worse. Lets see how these tarriffs affects our interest rates tomorrow.

This is only the beginning. Prepare for volatility.

Time to Use an Umbrella?

Time to Use an Umbrella? How Selling Covered Calls Can Protect You in a Stormy Market

When the stock market feels like a storm on the horizon, it’s time to pull out an umbrella. In this case, that umbrella is the covered call strategy—a simple way to protect your investments from market volatility while earning extra income.

Here’s how to use this strategy to stay dry when the market gets rough:

• What is a covered call?
  Think of it as renting out your umbrella during a storm. If you own at least 100 shares of a stock, you can "rent out" the right for someone else to buy your shares at a set price (the strike price) within a specific timeframe. In exchange, they pay you a "rental fee" (a premium). Even if the storm passes without much action, you keep that fee.

• Why sell covered calls?

  • Earn income no matter what. The premium is yours to keep, rain or shine.

  • Stay protected. If the stock price dips a little, the premium you earned can offset the loss.

  • Maximize returns. In calm, flat, or slightly bullish markets, you make the most of the steady conditions.

• How to use it effectively:

  • Choose a strike price just above the stock’s current price—like setting your umbrella up in a spot that offers some sun protection, too.

  • Understand the trade-off: if the market surges unexpectedly, you’ll still have to sell your shares at the agreed price, capping your upside potential.

Covered calls are like having a versatile umbrella—helping you stay protected from market turbulence while creating a little extra "fun money" during uncertain times. It’s a practical, low-risk strategy for investors who want to hedge against risk and keep their portfolio dry in stormy weather.

Thank you for reading! If you found this newsletter helpful, feel free to share it with friends, family, or colleagues who might benefit. Stay tuned for 1-2 posts every week featuring the latest market updates and valuable insights to help you stay ahead.

Kyle Allgair
CEO, KPA Home Loans
📞 (279) 977-8149 | ✉️ [email protected]
🌐 KPAhomeloans.com

About Kyle:
As the CEO of KPA Home Loans, Kyle Allgair brings years of expertise in real estate and strategic financial planning. Whether you're looking to build wealth through real estate or need personalized financial advice, Kyle is here to help you achieve your goals. Contact him today!