Below are the trades I recommended in today’s Options Income Blueprint Live Trading Session. 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.
General Motors (GM)
Note: We are carrying over a net debit on GM from a previous position. You can enter today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it as an ongoing position.
Current Stock Price: $49.14
Net Debit: $7
Action: Sell to open the GM Aug Week Four (8/27) 49 Put
Current Option Price: $0.52-$0.60
Recommended Limit: Set your initial limit order at $0.56. You can go as low as $0.46, but please don’t start there and always use limit orders.
New Net Debit: $6.44
Expiration: After the close on Friday, Aug. 27
Potential Rate of Return: I am targeting breakeven for this position
Micron Technology (MU)
Note: We are carrying over a net debit on MU from a previous position. You can enter today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it as an ongoing position.
Current Stock Price: $72.09
Net Debit: $10.60
Action: Sell to open the MU Aug Week Four (8/27) 72 Put
Current Option Price: $0.85-$0.88
Recommended Limit: Set your initial limit order at $0.86. You can go as low as $0.76, but please don’t start there and always use limit orders.
New Net Debit: $9.74
Expiration: After the close on Friday, Aug. 27
Potential Rate of Return: I am targeting breakeven for this position
Citigroup (C)
Current Stock Price: $71.84
Action: Sell to open the C Aug Week Four (8/27) 71.50 Put
Current Option Price: $0.51-$0.54
Recommended Limit: Set your initial limit order at $0.52. 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. 27
Potential Rate of Return: 0.7% in four days, or 66% annualized, if this option expires worthless
Sonos (SONO)
Current Stock Price: $39.70
Action: Sell to open the SONO Aug Week Four (8/27) 39 Put
Current Option Price: $0.34-$0.39
Recommended Limit: Set your initial limit order at $0.36. You can go as low as $0.30, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Aug. 27
Potential Rate of Return: 0.9% in four days, or 84% annualized, if this option expires worthless