Options Income Blueprint

OIB Trade Alert: GM, PFE

We temporarily exited our General Motors (GM) and Pfizer (PFE) positions ahead of the companies’ earnings announcements to avoid any unnecessary risk. GM shot up after reporting better-than-expected Q4 revenue and earnings and record profits for the full year. Moreover, management issued upbeat guidance for 2023 and announced it is buying a $650 million stake…

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OIB Trade Alert: ROKU

The premium on our Roku (ROKU) put has fallen by more than half in just over a day. Let’s book profits now rather than risk holding the position another week and a half. Current Stock Price: $59.25 Cash in Hand: $0.67 Action: Buy to close the ROKU Feb Week Two (2/10) 50 Put Current Option…

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OIB Trade Alert: GM, PFE

We have call positions in core stocks General Motors (GM) and Pfizer (PFE) expiring today. Both companies are scheduled to report earnings on Tuesday. Our GM shares are on track to be called away. Our cost basis is much higher than the current share price, which means we will have a large net debit on…

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OIB Trade Alert: DVN

Next week could be a wild one with a spate of earnings reports from mega tech and a Federal Reserve meeting. However, I do not want to sit on the sidelines. Today, I am recommending we sell a put on fracker Devon Energy (DVN), a name we traded successfully numerous times last year. We’re going…

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OIB Trade Alert: MRVL

I am recommending we roll our Marvell Technology (MRVL) call out three weeks and to a higher strike price to avoid having our shares called away. While we will need to spend a bit of cash to roll, we are picking up another $1 in potential capital appreciation. Current Stock Price: $43.52 Cost Basis: $55.80…

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OIB Trade Alert: BAC

I am recommending we roll our Bank of America (BAC) put out two weeks to generate more income and reduce our net debit on the position. You can enter the second leg of today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it…

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OIB Trade Alert: SQ

This is not the kind of market where it pays to get greedy. Let’s close our Block (SQ) put now. Current Stock Price: $79.42 Cash in Hand: $0.44 Action: Buy to close the SQ Jan Week Four (1/27) 76 Put Current Option Price: $0.31-$0.32 Recommended Limit: Set your initial limit order at $0.32, but adjust as…

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OIB Trade Alert: GM

We were assigned shares of General Motors (GM) last week at $38. Factoring in the large net debit we were carrying on the position, our cost basis is significantly above the current share price. However, as I have been saying, this is a long-term position in a core stock that is grossly undervalued and a…

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OIB Trade Alert: CHWY

Chewy (CHWY) is up nicely today, and we’ve exceeded our annualized rate of return goal. Let’s book profits now and free up capital for new trades this week. Current Stock Price: $43.35 Cash in Hand: $0.35 Action: Buy to close the CHWY Jan Week Four (1/27) 37 Put Current Option Price: $0.07-$0.08 Recommended Limit: Set…

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OIB Trade Alert: GM

Our General Motors (GM) Jan Monthly (1/20) 38 Put is in the money. I am recommending we accept shares. The plan is to sell an at-the-money call next week with the goal of being called out of shares. We will then re-enter the position after the company’s earnings report, which is scheduled for Jan. 31.…

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