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. So today, I am recommending we put some capital to work with two new trades.
The first is a put on home furnishings retailer Williams-Sonoma (WSM), a name we have traded successfully a handful of times throughout the years.
I also want to put on a post-earnings trade in Visa (V). The stock is up around 2.6% today following the release of the company’s fiscal first-quarter results.
The company beat on the top and bottom lines. Revenue was up 12% year over year to $7.9 billion, while adjusted earnings of $2.18 per share were up 21% from a year ago, easily exceeding Wall Street’s estimate of $2.01 per share.
Let’s take advantage of still-elevated volatility levels by selling a bull put spread. If you are new to spread trading, please watch my Bull Put Spread Coaching before entering the Visa trade.
Williams-Sonoma (WSM)
Current Stock Price: $125.83
Action: Sell to open WSM Feb Monthly (2/17) 124 Put for around $3.75. You can go as low as $3.45, but please don’t start there and always use limit orders.
Visa (V)
Current Stock Price: $230.66
Action: Sell to open V Feb Week Two (2/10) 220 Put for around $0.71 and buy to open the V Feb Week Two (2/10) 215 Put for around $0.33. Set initial credit limit at $0.38.