Below are the trades from today’s Income Masters Live Trading Session.
Action on Existing Position
I am recommending we roll our Starbucks (SBUX) put out one week. Note that this trade is only for people who are already in the position.
Current Stock Price: $110.71
Cash in Hand: $1.12
- Buy to close the SBUX Oct Week One (10/1) 114 Put for around $3.30
- Sell to open the SBUX Oct Week Two (10/8) 114 Put for around $3.65
- Set initial credit limit at $0.35
New Cash in Hand: $1.47
Note: I never recommend doubling up on a stock. Choose the trade that best suits your risk tolerance and goals.
TRADE ONE*: Sell to open Williams-Sonoma (WSM) Oct Monthly (10/15) 175 Put for around $4.65. You can go as low as $4.25., but please don’t start there and always use limit orders. (Current stock price: $177.44)
Sell to open the WSM Oct Monthly (10/15) 160 Put for around $1.05 and buy to open the WSM Oct Monthly (10/15) 155 Put for around $0.70. Set initial credit limit at $0.35, but please don’t start there and always use limit orders.
*If you are new to spread trading, please watch my Bull Put Spread Coaching Session before entering the trades.