There was no live trading this week, and I held off putting on new trades to see if the market would react to the Federal Reserve meeting minutes. With that out of the way, I have two new trades on stocks we’ve traded successfully past.
Please do not chase the trades by accepting less premium than the “go as low as” prices recommended below. Work your limit orders but exercise patience and let the trades come to you.
Delta Air Lines (DAL)
Current Stock Price: $34.22
Action: Sell to open DAL Aug Week Four (8/26) 33 Put
Current Option Price: $0.34-$0.36
Recommended Limit: Set your initial limit order at $0.35. You can go as low as $0.27, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Aug. 26
Potential Rate of Return: 1.1% in nine days, or 43% annualized, if this option expires worthless
The Trade Desk (TTD)
Current Stock Price: $70.06
Action: Sell to open TTD Aug Week Four (8/26) 63 Put
Current Option Price: $0.50-$0.58
Recommended Limit: Set your initial limit order at $0.54. You can go as low as $0.47, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Aug. 26
Potential Rate of Return: 0.9% in nine days, or 35% annualized, if this option expires worthless