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.
Micron Technology (MU)
Current Stock Price: $87.53
Action: Sell to open the MU Feb Week Four (2/26) 83.50 Put
Current Option Price: $0.56-$0.67
Recommended Limit: Set initial limit order at $0.61. You can go as low as $0.50, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Feb. 26
Potential Rate of Return: 0.7% in four days, or 67% on an annualized basis, if this option expires worthless
QuantumScape (QS)
Current Stock Price: $58.32
Action: Sell to open the QS Mar Week One (3/5) 45 Put
Current Option Price: $0.60-$0.90
Recommended Limit: Set initial limit order at $0.75. You can go as low as $0.65, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, March 5
Potential Rate of Return: 1.7% in 11 days, or 55% on an annualized basis, if this option expires worthless
CVS Health (CVS)
Current Stock Price: $69.72
Action:
- Buy 100 shares at market
- Sell to open the CVS Mar Week One (3/5) 72 Call for around $0.54
Cost Basis: $69.18
Expiration: After the close on Friday, March 5
Potential Rate of Return: 4% in 11 days, or 134% on an annualized basis, if shares are called away