Below are the trades I recommended in today’s Options Income Blueprint Live Trading and Strategy Session, where I also discussed Buy-Writes. You can watch a recording 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” prices recommended below. Work your limit orders but exercise patience and let the trades come to you.
Marvell Technology Group (MRVL)
Current Stock Price: $43.30
Action: Sell to open the MRVL Nov Monthly (11/20) 42.50 Put
Current Option Price: $0.41-$0.45
Recommended Limit: Set initial limit order at $0.43. You can go as low as $0.37, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Nov. 20
Potential Rate of Return: 1% in four days, or 93% on an annualized basis, if this option expires worthless
General Motors (GM)
Current Stock Price: $41.64
Action: Sell to open the GM Nov Week Four (11/27) 40 Put
Current Option Price: $0.48-$0.50
Recommended Limit: Set initial limit order at $0.49. You can go as low as $0.44, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Nov. 27
Potential Rate of Return: 1.2% in 11 days, or 41% on an annualized basis, if this option expires worthless
Peloton Interactive (PTON)
Current Stock Price: $101.91
Action: Sell to open the PTON Nov Week Four (11/27) 90 Put
Current Option Price: $0.85-$0.91
Recommended Limit: Set initial limit order at $0.88. You can go as low as $0.80, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Nov. 27
Potential Rate of Return: 1% in 11 days, or 33% on an annualized basis, if this option expires worthless