I did not hold a Live Trading and Strategy Session this week due to the Investor’s Blueprint Live event, but that doesn’t mean we cannot trade. Today, I have two recommendations for you on familiar names — Corning (GLW) and Apple (AAPL).
I was a fan of glassmaker Corning long before the coronavirus pandemic, but the race to produce billions of medical-grade vials and syringes to hold a vaccine has given me a new reason to be bullish on the stock. The company received a $204 million government contract that it is using to accelerate construction of a furnace that will be used in the production of vaccine vials.
Apple announced a slew of new products and services Tuesday — including the eighth-generation iPad, Apple Watch Series 6 and Fitness+ workout services — and the stock didn’t budge. Everyone appears to be waiting for the launch of a new 5G iPhone rumored for October. In the meantime, let’s collect some more income.
Corning (GLW)
Current Stock Price: $33.22
Action: Sell to open the GLW Sep Week Four (9/25) 32.50 Put
Current Option Price: $0.38-$0.45
Recommended Limit: Set your initial limit order at $0.41. You can go as low as $0.34, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Sept. 25
Potential Rate of Return: 0.9% in 10 days, or 32% on an annualized basis, if this option expires worthless
Apple (AAPL)
Current Stock Price: $114.09
Action: Sell to open the AAPL Sep Week Four (9/25) 110 Put
Current Option Price: $1.68-$1.70
Recommended Limit: Set your initial limit order at $1.69. You can go as low as $1.56, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Sept. 25
Potential Rate of Return: 1.5% in 10 days, or 56% on an annualized basis, if this option expires worthless