While I am not holding a Live Trading Session today, I am recommending new trades on two stocks we trade frequently in Options Income Blueprint.
Both companies delivered excellent earnings reports last week. And I am recommending we sell in-the-money puts to collect extremely large premiums. This will give us flexibility to roll or close early.
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.
Citigroup (C)
Current Stock Price: $71.84
Action: Sell to open the C Oct Week Four (10/22) 72 Put
Current Option Price: $0.68-$0.75
Recommended Limit: Set your initial limit order at $0.71. You can go as low as $0.61, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Oct. 22
Potential Rate of Return: 1% in four days, or 90% annualized, if this option expires worthless
Walgreens Boots Alliance (WBA)
Current Stock Price: $47.82
Action: Sell to open the WBA Oct Week Four (10/22) 47.50 Put
Current Option Price: $0.31-$0.37
Recommended Limit: Set your initial limit order at $0.34. You can go as low as $0.28, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Oct. 22
Potential Rate of Return: 0.7% in four days, or 65% annualized, if this option expires worthless