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.
Marvell Technology (MRVL)
Current Stock Price: $69.61
Action: Sell to open the MRVL Nov Week One (11/5) 68 Put
Current Option Price: $0.34-$0.40
Recommended Limit: Set your initial limit order at $0.37. 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, Nov. 5
Potential Rate of Return: 0.5% in four days, or 50% annualized, if this option expires worthless
Pfizer (PFE)
Note: We currently have a net debit on this core stock after our shares were called away last week. The premium we generate today will reduce that net debit. You can enter today’s trade even if you were not in the previous position. Just be aware that we will be tracking and managing the trade based on the ongoing position.
Current Stock Price: $45.56
Net Debit: $3.56
Action: Sell to open the PFE Nov Week One (11/5) 44.50 Put
Current Option Price: $0.31-$0.32
Recommended Limit: Set your initial limit order at $0.31. You can go as low as $0.27, but please don’t start there and always use limit orders.
New Net Debit: $3.25
Expiration: After the close on Friday, Nov. 5
Potential Rate of Return: I am targeting breakeven for this position