Below are the trades I recommended in today’s Options Income Blueprint Live Trading and Strategy Session, where I also discussed Managing Net Debits. 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” prices recommended below. Work your limit orders but exercise patience and let the trades come to you.
Peloton Interactive (PTON)
Current Stock Price: $98.21
Action: Sell to open the PTON Nov Week Two (11/13) 88 Put
Current Option Price: $0.51-$0.72
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, Nov. 13
Potential Rate of Return: 0.7% in four days, or 63% on an annualized basis, if this option expires worthless
D.R. Horton (DHI)
Current Stock Price: $68.05
Action: Sell to open the DHI Nov Week Two (11/13) 65 Put
Current Option Price: $0.36-$0.46
Recommended Limit: Set initial limit order at $0.41. You can go as low as $0.35, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Nov. 13
Potential Rate of Return: 0.6% in four days, or 58% on an annualized basis, if this option expires worthless
Corning (GLW)
Current Stock Price: $35.99
Action: Sell to open the GLW Nov Monthly (11/20) 35 Put
Current Option Price: $0.47-$0.53
Recommended Limit: Set initial limit order at $0.50. 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. 20
Potential Rate of Return: 1.4% in 11 days, or 48% on an annualized basis, if this option expires worthless