First Solar (FSLR) has soared more than 35% in the past week following the company’s announcement of a surprise Q2 profit and a breakthrough in the Senate on a $369 billion climate spending package that includes large tax credits for clean energy, such as solar. I am recommending we roll our put to a higher…
Mosaic (MOS) announced strong second-quarter results yesterday after the close. While revenue and earnings fell short of Wall Street’s expectations, the stock is down only slightly this morning. The muted response is likely due in part to the company’s comments that fertilizer demand will be supported by tight crop supplies into next year. We were…
Valero (VLO) is rallying today in the face of a broader market decline. Let’s book profits on our put, earning a 47% annualized rate of return. Current Stock Price: $112.42 Cash in Hand: $1.03 Action: Buy to close the VLO Aug Week One (8/5) 103 Put for around $0.24, but adjust as needed to close…
The chip sector is rallying after the House approved a $280 billion bill focused on domestic semiconductor manufacturing. Let’s book profits on our NVIDIA (NVDA) put, earning a 52% annualized rate of return. Current Stock Price: $187.26 Cash in Hand: $1.79 Action: Buy to close the NVDA Aug Week Two (8/12) 160 Put for around…
We have positions in Expedia (EXPE), Mosaic Company (MOS), VanEck Vectors Semiconductor ETF (SMH) and Target (TGT) expiring today. The long leg of our EXPE put spread is on track to expire worthless. The company is scheduled to report earnings next week. We will put on a new spread after we see how investors react…
First Solar (FSLR) is up nearly 25% in the past two days following two big announcements. First, there was a breakthrough in the Senate on a $369 billion climate spending package that includes large tax credits for clean energy, such as solar. Second, the company reported a surprise Q2 profit of $0.52 per share on…
I am recommending selling puts on Best Buy (BBY) and SPDR S&P Biotech ETF (XBI) to reduce our net debits on the positions. BBY is rallying today with the broader market despite the company cutting its outlook for the second quarter and full year. Management also said they will pause share buybacks, although Best Buy…
United Airlines (UAL) has struggled since we entered the trade one week ago. Let’s exit now with a small profit rather than risk having to roll out a week. Current Stock Price: $35.45 Cash in Hand: $0.42 Action: Buy to close the UAL Jul Week Five (7/29) 35 Put for around $0.35, but adjust as…
I want to temporarily close the short leg of our Expedia (EXPE) bull put spread, as well as our Moderna (MRNA) and SPDR S&P Biotech ETF (XBI) puts ahead of today’s Federal Reserve announcement. While the market seems to have priced in 75-basis-point rate increases in July and September and is rallying today, we could…
I am recommending we purchase protective puts on Target (TGT) and VanEck Vectors Semiconductor ETF (SMH) to hedge our LEAP positions against a market sell-off following this afternoon’s Federal Reserve meeting. Note that these are defensive positions meant to offset a move lower in the underlying stocks. However, a sharp sell-off could cause the value…
