Next week could be a wild one with a spate of earnings reports from mega tech and a Federal Reserve meeting. However, I do not want to sit on the sidelines.
Today, I am recommending we sell a put on fracker Devon Energy (DVN), a name we traded successfully numerous times last year.
We’re going out two weeks in case earnings or central bankers cause any short-term indigestion in the market next week.
Current Stock Price: $66.10
Action: Sell to open DVN Feb Week Two (2/10) 65 Put
Current Option Price: $1.16-$1.19
Recommended Limit: Set your initial limit order at $1.17. You can go as low as $0.98, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Feb. 10
Potential Rate of Return: 1.8% in 15 days, or 44% annualized, if this option expires worthless