Below are the trades I recommended in today’s Options Income Blueprint Live Trading and Strategy Session, where I also covered Why (and How) We Roll Calls. You can watch a recording of the session here.
Note that option prices may have moved since the Live Trading Session. Please do not chase the trades by accepting less premium than the “go as low as” price recommended below. Work your limit orders but exercise patience and let the trades come to you.
Bank of America (BAC)
Current Stock Price: $24.06
Action: Sell to open the BAC Oct Week Five (10/30) 24 Put
Current Option Price: $0.29-$0.31
Recommended Limit: Set initial limit order at $0.30. You can go as low as $0.25, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Oct. 30
Potential Rate of Return: 1.3% in four days, or 114% on an annualized basis, if this option expires worthless
Advanced Micro Devices (AMD)
Current Stock Price: $79.41
Action: Sell to open the AMD Oct Week Five (10/30) 77 Put
Current Option Price: $0.78-$0.81
Recommended Limit: Set initial limit order at $0.79. You can go as low as $0.71, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Oct. 30
Potential Rate of Return: 1% in four days, or 94% on an annualized basis, if this option expires worthless
Intel (INTC)
Note: We will be tracking based on an ongoing position with a net debit. However, you can enter today’s trade even if you were not in the previous position.
Current Stock Price: $45.82
Net Debit: $7.57
Action: Sell to open the INTC Oct Week Five (10/30) 45.50 Put
Current Option Price: $0.41-$0.42
Recommended Limit: Set initial limit order at $0.41. You can go as low as $0.36, but please don’t start there and always use limit orders.
New Net Debit: $7.16
Expiration: After the close on Friday, Oct. 30
Potential Rate of Return: I am targeting breakeven for this position