Below are the trades from today’s Income Masters Live Trading Session.
TRADE ONE: Sell to open Starbucks (SBUX) Feb Week One (2/4) 96 Put for around $0.64. You can go as low as $0.58, but please don’t start there and always use limit orders. (Current stock price: $98.02)
TRADE TWO*: Sell to open the D.R. Horton (DHI) Feb Week Two (2/11) 91 Call for around $1.78. (Current stock price: $89.87)
*We own uncovered shares of DHI from a previous position. If you are not in the current position, you will need to buy 100 shares of the stock first for every call you plan to sell. And note that we will be tracking and managing the trade based on the ongoing position.
TRADE THREE**: Sell to open the PayPal (PYPL) Feb Week Two (2/11) 105 Put for around $0.39 and buy to open the PYPL Feb Week Two (2/11) 95 Put for around $0.14. Set initial credit limit at $0.25. (Current stock price: $131.24)
**If you are new to spread trading, please watch my Bull Put Spread Coaching Session before entering the trade.