Below are the trades from today’s Income Madness Live Trading Session.
Action on Existing Position
I am recommending we close our Citigroup (C) put.
Current Stock Price: $68.85
Cash in Hand: $0.55
Action: Buy to close the C Jul Monthly (7/16) 67.50 Put for around $0.12, but adjust as needed to close today
Profit: $0.43, or $43 per contract
TRADE ONE: Sell to open the Taiwan Semiconductor Manufacturing (TSM) Jul Monthly (7/16) 118 Put for around $0.98. You can go as low as $0.90, but please don’t start there and always use limit orders. (Current stock price: $117.73)
TRADE TWO*: Sell to open the Charles Schwab (SCHW) Jul Monthly (7/16) 70 Put for around $0.46. You can go as low as $0.40, but please don’t start there and always use limit orders. (Current stock price: $71.29)
*Note that Charles Schwab is expected to announce earnings tomorrow, which could cause shares to move.
TRADE THREE**: Sell to open the Square (SQ) Jul Week Four (7/23) 215 Put for around $0.76 and buy to open SQ Jul Week Four (7/23) 205 Put for around $0.33. Set initial credit limit at $0.43. (Current stock price: $235.20)
**If you are new to spread trading, please watch my Bull Put Spread Coaching Session before entering the trade.